Philadelphia Consolidated Holding Corp. has reported its initial estimate of losses attributable to Hurricane Rita.
Although claims information is preliminary, the company estimates its net after-tax losses to be approximately $3.3 million. Such after-tax losses may change due to the preliminary nature of the information currently available. The company further announced that the catastrophe losses due to Hurricane Rita impacted its commercial lines book of business.
As a result of utilizing certain catastrophe reinsurance coverage in connection with this hurricane event, the company will recognize approximately $0.2 million, after-tax, in accelerated catastrophe reinsurance premium expense during the third quarter 2005.
The company’s catastrophe reinsurance programs in place after Hurricane Rita provide $288.0 million in excess of a $3.5 million per occurrence retention for the company’s personal lines catastrophe losses and $90.0 million in excess of a $10.0 million per occurrence retention for its commercial lines catastrophe losses. These catastrophe reinsurance programs provide catastrophe reinsurance coverage through May 31, 2006.
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